Changing Market Forces Damen to Review Strategy

Damen Shiprepair & Conversion (DSC) has announced a reorganization at three Dutch yards within its group. Staff members of Damen Shiprepair Rotterdam (DSR), Damen Shiprepair Van Brink (DSVB) and Damen Shiprepair Vlissingen (DSVl) were informed that the overall number of staff will be reduced by approximately 150 employees. Unfortunately, DSC has been forced to take these measures due to continued adverse market conditions.

Large-scale market fluctuations are common for the ship repair sector – within which the Damen Shipyards Group has been active for over 40 years. The strategy of DSC focusses on diversification as well as developing new product/market combinations. However, the oil and gas market has decreased in such a way that has left DSC unable to fill the void with other activities.

The market expectations for the short and medium term are not positive. There is no recovery in sight for commodity prices in general and oil and gas prices in particular and the resulting reduction in ship repair projects forces DSC to review its situation. Unfortunately, one of the consequences of this, is downsizing the number of permanent staff in all layers of the organization, as well as reducing facility costs.

The strategy of DSC towards the future remains focused on expansion and further diversification of its product range, where it will continue to offer solutions matching the changing requirements of customers and markets. All employees at the three locations, as well as the workers’ council and trade unions, have been informed about the intention to reorganize. It is the intention of DSC to complete the reorganization before summer 2017. DSC will continue to offer all customers the high levels of service and quality they are used to receiving at DSC yards. DSC is convinced that, as a result of these measures, it will reinforce, and where possible even extend, its position within the worldwide ship repair market.

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